Stock Market Highlights: Sensex sheds 440 points, Nifty settles below 15,000 on broad based selling

Time right to put oil under GST: SBI’s Soumya Kanti Ghosh

Stock Market Highlights: Indian benchmark equity indices, Sensex and Nifty ended lower Friday amid weak global cues as rising bond yields spooked investors. All the sectoral indices ended in the red with banks, financials and metal indices leading the losses. Broader markets also succumbed to selling pressure.

It’s not surprising to see that the way markets are reacting to the global cues, in absence of any major trigger from the domestic front. Going ahead, we feel global cues would continue to dictate the market trend in the near term.  Besides, on the domestic front, key macro data like CPI, WPI and IIP would be on investors’ radar. We reiterate our view to limit naked leveraged trades until we see some clarity emerging over the next directional move.

The broader market came under a lot of selling pressure on March 05 as unnerved by the shaken equity markets globally, short-term investors rushed to take profits in mid and small-cap stocks that have risen quite well over the past few weeks. Nifty ended the week in the positive after two weeks of losses and recovered some of the lost ground even on Friday. However, investors in Indian equities will look at the trend of bond yields abroad to assume higher risk and in the meanwhile, the markets could consolidate/correct. 14,208-14,491 is the next support band, while 15,150-15,266 remains a crucial resistance.

The forex market is very volatile, and the short-term trading range has shifted to 72.50-73.50. The speculation that reopening of economies, along with additional fiscal stimulus will increase inflation and the Fed will have to begin tapering at the earliest is activating the dollar bulls. In our view, traders are prematurely betting for a Fed rate hike and an actual discussion will begin in late 2021. But until then, the global cautious tone will limit the fall in spot on account of a slew of IPOs lined up in coming months. Now, the immediate focus is on tonight’s US NFP data, only a dismal figure may spark concerns for America’s ability to recover and weigh on the dollar. So for next week, we expect the spot to trade within 72.50-73.50 with a sideways bias.

On the weekly basis, despite the market closed in the positive territory the market mood was sluggish.  A substantial jump in the long-term treasury yields and upward activity in the dollar index towards 92, resulted in weakness across the globe. The Nifty/Sensex closed below the crucial supports of 14,950 and 50,500 on a daily basis. The bank nifty has narrowed down the trading range and closed at an unchanged level on a weekly basis. The dollar index has formed a series of higher high and higher low that could be the cause of concern as it controls or curtail inflows for emerging markets.

On a daily basis, the market has formed the long-legged Doji formation, which is an indication of indecisiveness. However, in the short term until the market is not breaking 15280 levels our bias should be on the downside. In the coming week, we could see, Nifty/Sensex touching minimum 14,750/50,000 or 14,550/49,300 levels.  On the higher side, 15,150/51,200 and 15,280/51,600 would be major hurdles. The focus should be on FMCG and Auto companies

The markets have had yet another day in the red. However, it has not broken the medium-term support range of 14,700-14,800. If we break that, we could travel south to levels closer to 14,400-14,500. If we bounce from these levels, we would need to get past the 15,300 levels to move to higher targets of 15,500-15,600. Until then the Nifty is going to be range-bound and choppy.

Here are the highlights of the market this week:

– Market Snaps 2-week Losing Streak; Sensex & Nifty Gain Nearly 3% Each This Week

– Nifty Bank Rises Over 1% & Midcap Index Over 3%; Media & IT Top Gaining Indices

– Except PSU Bank, All Sectoral Indices Give Positive Returns This Week

– UltraTech, Grasim, Adani Ports & Kotak mah Bank Top Nifty Gainers This Week

– Only 6 Nifty Stocks (Bharti, IndusInd, SBI, Hindalco, CIL, HDFC Bank) Close Lower

Market At Close

– US Yield Rise Spooks Global Markets; Frontline Indices Close 1-2% Lower

– Sensex Manages To Hold 50,000, Closes 441 Points Lower At 50,405

– Nifty Gives Up 15,000, Ends With A Cut Of 143 Points At 14,938

– Midcap Index Falls 530 Pts To 24,078 & Nifty Bank 574 Pts To 35,228

– All Sectoral Indices Close Lower While Volatility Index Rises Nearly 6%

– Financials & Metals Amongst Top Losers; Nifty Metal & PSU Bank Fall 3-4%

– 38 Nifty Stocks Close In The Red; IndusInd, Wipro, Tata Motors Top Losers

– Wipro Slides 4% As Brokerages See Synergy Concerns On Capco’s Acqn

– Tata Chairman’s Comment Of No Tesla Deal & Lower JLR Sales Drag Tata Motors

– PSU Companies Rise In A Weak Trading Session; ONGC & GAIL Top Nifty Gainers

– Titan Closes Higher While Manappuram & Muthoot Slip-On Falling Gold Prices

– FACT, CSB, Emami, Blue Dart Amongst Top Midcap Gainers

– Apollo Tyres, PTC Fin, Max Ventures, BoB, Nalco Top Midcap Losers

Closing Bell | Indian equity market ended lower Friday amid weak global cues as rising bond yields spooked investors. The Sensex ended 440.76 points, or 0.87 percent lower at 50,405.32, while the Nifty settled at 14,938.10, down 142.65 points, or 0.95 percent. All the sectoral indices ended in the red with banks, financials and metal indices leading the losses. Broader markets also succumbed to selling pressure.

On the Nifty50, IndusInd Bank, UPL, Tata Motors, Wipro and Hindalco Industries were the top losers, while ONGC, GAIL India, Maruti Suzuki, Kotak Mahindra Bank and Hero MotoCorp were the top gainers.

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